Azure Local Has Two SDN Operating Models: Arc-Managed Networking Versus Full On-Premises SDN

This article clarifies the two distinct software-defined networking (SDN) operating models available on Azure Local: SDN enabled by Azure Arc and SDN managed through on-premises tools. It explains that these are not interchangeable interfaces but have different Network Controller deployments, supported resources, VM scopes, management tools, and operational dependencies. Arc-managed SDN is suited for VLAN-backed networks and Azure-managed VM resources, while on-premises SDN supports overlays, tenant virtual networks, load balancing, and gateways. The article emphasizes that mixed management is unsupported and provides guidance on choosing the right model based on required networking services and management plane preferences.